Ashland Inc., Covington, Ky., will offer lump sums or immediate reduced annuities to about 21,000 terminated vested pension fund participants who have yet to retire, said an 8-K filing with the Securities and Exchange Commission on Friday.
The company said in the filing that eligible participants will receive the offer in late June and will have until early August to make a decision, with payments expected to begin in September.
The affected participants are in the Ashland Hercules Pension Plan and the Ashland Chemical Hourly Plan. In its most recent 10-K filing, the company said the majority of its U.S. pension funds closed effective Dec. 31, 2010.
As of Sept. 30, global plan assets totaled $3.075 billion, while projected benefit obligations totaled $4.326 billion, for a funding ratio of 71%. A breakdown of individual plans was not made immediately available.
Gary Rhodes, company spokesman, did not immediately return a phone call seeking further information.